* Yen unmoved after BoJ meeting
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
(Adds new comment, updates prices, changes byline, dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, April 27 (Reuters) - The dollar was mixed against major peers on Tuesday, gaining against the
yen and commodity currencies, with investors biding time ahead of a policy decision by the U.S. Federal
Reserve on Wednesday.
The yen, on the other hand, hardly budged after the Bank of Japan kept its policy on hold.
The safe-haven greenback was largely out of favor for most weeks after world stocks started the week
hitting a record high, although a pullback in global equities on Tuesday helped keep it above the recent
lows.
Trading in currencies was largely subdued, ahead of the Fed's two-day meeting, which ends on Wednesday,
where no change to policy is expected.
The market will pay close attention to comments from Fed Chairman Jerome Powell, who is likely to
address concerns and questions about whether improving economic conditions warrant a withdrawal of monetary
easing. Analysts, however, expect Powell to stick to the Fed's ultra-accommodative stance, which should
weigh on Treasury yields and the dollar.
"The Fed is widely expected to maintain current policy settings on Wednesday, but traders are well aware
that a hawkish shift - an acknowledgement of underlying economic strength - could trigger renewed dollar
upside," said Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto.
"If signs of optimism leak through in the official statement or during the press conference, investors
are likely to bring tapering expectations forward and drive Treasury yields upward. Awareness of this risk
is keeping traders parked in the dollar," Schamotta added.
In midday trading, the dollar index =USD , which tracks the U.S. currency against six peers, was flat
at 90.912, after dipping to the lowest since March 3 overnight at 90.679.
The dollar added 0.4% to 108.50 yen JPY= , another haven currency, continuing its rise from the
seven-week low of 107.48 reached Friday.
The yen showed a muted response after the Bank of Japan kept its monetary policy on hold as widely
expected. "The reflation trade is back on," Gavin Friend, a strategist at National Australia Bank, said on a
client podcast. "Currencies outside of the dollar should be doing quite well anyway in that environment."
The dollar has fallen nearly 3% since late March as U.S. Treasury yields traded in narrow ranges after
retreating from a 14-month high of 1.7760%, slashing the currency's yield appeal.
The euro was slightly down at $1.2078 EUR=EBS , but not far from the two-month high of $1.2117 reached
Monday.
The commodity-linked Australian dollar, a barometer of risk appetite, eased 0.4% to US$0.7771 AUD=D3 ,
after a 0.7% rally overnight that took it just shy of a five-week peak.
The offshore Chinese yuan retreated 0.1% to 6.4789, after rising to a seven-week top of 6.4710 per
dollar CNH=EBS on Monday.
In cryptocurrencies, bitcoin BTC=BTSP hit a high of $55,354.59, following a 10% surge on Monday,
driven by reports that JPMorgan Chase JPM.N is planning to offer a managed bitcoin fund. That snapped a five-day losing streak that had taken the digital token to the cusp of $47,000, with
losses accelerating amid worries about U.S. President Joe Biden's plan to raise capital gains taxes.
========================================================
Currency bid prices at 11:41AM (1541 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 90.8990 90.8850 +0.02% 1.020% +91.0720 +90.8100
Euro/Dollar EUR=EBS $1.2078 $1.2087 -0.07% +0.00% +$1.2093 +$1.2058
Dollar/Yen JPY=EBS 108.5400 108.0950 +0.41% +0.00% +108.5500 +108.0900
Euro/Yen EURJPY= 131.10 130.61 +0.38% +3.29% +131.1200 +130.5800
Dollar/Swiss CHF=EBS 0.9135 0.9141 -0.07% +0.00% +0.9171 +0.9124
Sterling/Dollar GBP=D3 $1.3914 $1.3906 +0.06% +0.00% +$1.3924 +$1.3860
Dollar/Canadian CAD=D3 1.2394 1.2394 +0.01% +0.00% +1.2418 +1.2389
Aussie/Dollar AUD=D3 $0.7773 $0.7802 -0.37% +0.00% +$0.7803 +$0.7764
Euro/Swiss EURCHF= 1.1031 1.1047 -0.14% +2.07% +1.1062 +1.1024
Euro/Sterling EURGBP= 0.8677 0.8693 -0.18% -2.91% +0.8701 +0.8675
NZ NZD=D3 $0.7212 $0.7236 -0.31% +0.00% +$0.7237 +$0.7202
Dollar/Dollar
Dollar/Norway NOK=D3 8.2785 8.2885 -0.07% +0.00% +8.3135 +8.2745
Euro/Norway EURNOK= 9.9980 10.0220 -0.24% -4.48% +10.0327 +10.0019
Dollar/Sweden SEK= 8.3752 8.3783 -0.10% +0.00% +8.4191 +8.3748
Euro/Sweden EURSEK= 10.1160 10.1259 -0.10% +0.00% +10.1526 +10.1156
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World FX rates https://tmsnrt.rs/2RBWI5E
Federal Open Market Committee projections https://tmsnrt.rs/3sQouNv
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